Investors look to the commodity market to provide three primary benefits: portfolio diversification, inflation protection, and equity-like returns. However, empirical data shows that over the last decade, shifts in underlying fundamentals have undermined the role which commodities are expected to play in a diversified portfolio, particularly relative to natural resource equities.
In the Whitepaper “The Real Asset Strategies – Commodities vs. Natural Resource Equities”, RS Investments will review how changes in fundamentals impact the unique return streams generated by both commodities and natural resource equities in the context of the benefits expected from each investment option. In the process, we present the case for employing natural resource equities as a means to benefit from favorable long-term secular trends in the space while seeking superior risk-adjusted returns, similar diversification benefits, and more reliable inflation protection relative to commodities.
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Also, visit our dedicated global natural resources web site where financial advisors can learn more about investing in commodities and natural resource equities. The site also offers educational materials, actionable White Papers, and RS Hard Assets Team insights, including outlook, commentary, and performance.
View RS Hard Assets site: http://www.rsinvestments.com/GNR.htm
